Speedy cash collections are part of the fair debt collection practices act statute of limitations. Because numerous factors could prevent your customers from making payments and repaying their debts promptly, every business needs to have effective ways of collecting its payments as punctually as possible. This article offers you different ways of speeding up cash collection without being inconsiderate.
Speedy Cash Collection Techniques
When you realize that your accounts receivable balance keeps getting older every other month, you should bring out the aging report immediately–but you can avoid this scenario by looking into the payment cycle soon enough to see if it’s possible to collect the payments sooner.
Here are some effective techniques that you can use to speed up your cash collection:
Advance Payments
You can avoid bad debts and delayed payments by getting paid in advance. You can agree with your customers that they’ll be paying in advance for your goods or services. Advance payments come in various forms, including deposits, monthly or project retainers, prepayment plans, and prepaid gift cards.
If you’re the one who’s supposed to make payments to another business, ask them if they accept advance payments so that you don’t have to wait until the end of the month to send your payments. If advance payments aren’t common in your industry, your credit repair attorney in Miami can advise you on how to move forward and figure out a way to collect your cash in advance.
Have Several Cash-Equivalent Payment Options
Having a single payment option could be hindering you from collecting your payments promptly, especially if you’re dealing with a wide range of customers. For instance, if you have international clients, you need payment options that allow them to remit their payments easily and promptly from wherever they are.
So, if you haven’t incorporated global payment platforms like wire transfers, PayPal, credit cards, or cloud-based payment systems into your business, you need to sign up immediately. Most of these payment options are almost instant, ensuring you receive your payments in a matter of minutes, if not seconds. While some of these payment options are still handled manually, they can be systemized and automated to speed up the process.
Debt Recovery Solution
If you’ve tried to collect your payments from customers without success, you should try the debt recovery option. For instance, you can work with your local dynamic debt recovery solutions agency to recover your money.
But who does Dynamic Recovery Solutions collect for? As a debt collection agency, Dynamic Recovery Solutions buys bad debts from businesses and creditors who have given up on pursuing their customers. So, they pay the creditor the amount they’re owed by their customer and collect the amount owed from the customer or borrower. This is a perfect payment collection strategy because you transfer the stress of pursuing the customer or borrower to the debt collection agency.
Card on File
This payment strategy is ideal for long-term clients because it allows you to set up automatic approvals on a weekly or monthly basis by keeping their cards on file. This will not only save your busy clients a great deal of time, but it’ll also give you more control over your sales by ensuring that you get paid promptly.
If you want to learn more about speeding up your cash collection processes and repairing your debt, reach out to the reliable experts at The Phenix Group today!